Why is Chrome Silicon falling/rising?

Jul 02 2025 09:26 PM IST
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As of 02-Jul, Chrome Silicon Ltd's stock price is at 43.00, showing a short-term gain but significant long-term financial challenges, including operating losses and a poor ability to service debt. Despite recent performance outpacing the market, the company's long-term outlook remains troubling with a year-to-date decline of -24.75%.
As of 02-Jul, Chrome Silicon Ltd's stock price is currently at 43.00, reflecting an increase of 0.31 or 0.73%. The stock has shown a strong performance recently, with a consecutive gain over the last two days, resulting in a total return of 9.97%. Additionally, it has outperformed its sector by 2.19% today. However, despite these short-term gains, the company faces significant challenges, including operating losses and a weak long-term fundamental strength, as indicated by a staggering annual decline in operating profit of -221.53% over the past five years. The company's ability to service its debt is also concerning, with a poor EBIT to Interest ratio of -39.21, and a recent PAT of Rs -74.78 crore, which has fallen by -197.2%.

In the broader market context, Chrome Silicon's short-term return of +10.54% over the past week significantly outpaces the Sensex's return of +0.79%. However, the stock has underperformed in the long term, with a year-to-date decline of -24.75% compared to the Sensex's gain of +6.75%. This underperformance is compounded by the company's negative EBITDA and the lowest net sales recorded at Rs 5.04 crore, indicating a troubling financial outlook. Overall, while the stock is experiencing a short-term rise, the underlying financial weaknesses and poor long-term growth prospects suggest a precarious situation for investors.
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